HUMAN RESOURCE MANAGEMENT

BY:
PRAKASH PUNJ
 EVOLUTION OF HUMAN RESOURCE

• INDUSTRIAL RELATION:
The momentum for the industrial revolution grew through the 17th century.
Agricultural methods were continually improving, creating surpluses that were used
for trade. These advances created a need for improved work methods, productivity
and quality that led to the beginning of the Industrial Revolution.
• TRADE UNIONS:
During the late 1700's and early 1800's governments began to feel
pressure from the working class masses who started to question and
defy the power of the aristocracy. The working class began to form
workplace combinations and trade organizations to provide a collective
voice for their rights.
• WELFARE MANAGEMENT:
To protect the employees against exploitation by their employers. This give rise to
welfarism as the key concept in the management of human resource.
 CONTINUED

• PERSONNEL MANGEMENT: Evolution of Personnel management started in

19th century at that time there was a boom in industrialization which leads to
increase in franchising and influence of trade unions and harshness of industrial
condition called for the better of industrial condition.
• HUMAN RELATION MANAGEMENT:
The Human Relations movement argues that people are not just logical decision
makers but have needs for creativity support, recognition and self-affirmation.
 HUMAN RESOURCE MANAGEMENT

• Human Resource Management is the organizational function

that deals with issues related to people such as compensation,
hiring, performance management, organization development,
communication, administration and training, safety, wellness,
benefits and employee motivation.
 DIFFERENCE BETWEEN PM AND HRM

POINT OF DISCUSSION PERSONNEL HUMAN RESOURCE

MANAGEMENT MANAGEMENT
ORIENTATION MAINTENANCE ORIENTED DEVELOPMENT ORIENTED
STRUCTURE INDEPENDENT FUNCTIONS INTER-DEPENDENT PARTS
PHILOSOPHY REACTIVE PROACTIVE
RESPONSIBILITY PERSONNEL DEPARTMENT ALL MANAGERS IN
ORGANISATION
MOTIVATORS MONETARY REWARDS HIGH ORDER NEEDS
OUTCOMES IMPROVED PERFORMANCE IMPROVED SATISFACTION
AIMS IMPROVE EFFICIENCY OF DEVELOP THE
PEOPLE ORGANIZATION
 CAREER DEVELOPMENT

• Making a successful plan for your future is a continual process through which you
will cycle many times.

• Steps:
 Self-Assessment: Identify your interests, skills, values, and personality style.
 Implementing Goals: Take action through effective job search and/or education
strategies.
 Decision Making: Connect your knowledge about yourself and the world of work
to formulate career goals.
 Exploring Options: Learn about different career and education options.
 EVOLVING ROLE OF HR

• Line Managers
• Partnerships Strategic Focus
• Transformational Strategic Partner Change Agent
• Proactive & Integrated
• Organic Systems People
• People & Knowledge
Administrative
• Investment Center Employee Champion
Expert
Operational Focus
 MODELS OF HRM

• Fomburn et al., (1984) model

• Harvard model
• Guest model
• Warwick model
• Storey model
 FUNCTIONS OF HRM

MANAGERIAL FUNCTION OPERATIVE FUNCTION

PLANNING PROCUREMENT
ORGANIZING DEVELOPMENT
DIRECTING COMPENSATION
CONTROLLING INTEGRATION
MAINTENANCE
 JOB ANALYSIS

• Job analysis is a formal and detailed study of

jobs
• It refers to a scientific and systematic analysis
of a job in order to obtain all pertinent facts
about the job
• It is essentially a process of collecting and
analyzing all pertinent data relating to a job
PROCESS OF JOB ANALYSIS
 Techniques of Job Analysis

• Job Performance
• Personal Observation
• Interview
• Questionnaire
• Critical Incidents
• Log Records
 HUMAN RESOURCE PLANNING

• Definition: It is the process by which management

determines how an organization should move from its
current manpower position to its desired manpower
position.
• Objectives: To ensure optimum use of existing HR
 To forecast future requirements for HR
 To provide control measures
 To link HRP with Organizational Planning
 To determine levels of Recruitment and Training
 Need and Importance of HRP

• To carry on its work and to achieve its objectives

• HRP identifies gaps
• There is need to replace employees
• HRP facilitates expansion and growth
• HRP helpful in effective utilization of HR and
Technology.
• HRP is useful in anticipating Cost of HR which
facilitates budgeting easier.
• HRP facilitates Career and succession planning
Process of HRP
 RECRUITMENT

• RECRUITMENT: Recruitment refers to the process of attracting,

screening, and selecting qualified people for a job at an organization or
firm.
The sources of Recruitment
• Internal Sources • External Sources
 Transfers Press Advertisements
 Promotions
Educational Institutions
Placement Agencies
Employment Exchanges
Recommendations
Online
RECRUITMENT PROCESS
 SELECTION

DEFINITION: The process of choosing the most suitable candidate for a

job from among the available applicants is called selection.

METHODS OF SELECTION:
Tests:
1. Aptitude Tests:
Mental or
Intelligence test
Mechanical test
Psycho-motor test
2. Achievement Tests:
Job Knowledge test
Work sample test
3.Personality Tests:
Objective test
Projective test
Situation test
4. Interest Tests
Interviews:
1.Informal Interview
2.Formal Interview
3.Patterned or Structured
Interview
4.Non-Directed or
Unstructured Interview
5.Depth Interview
6.Group Interview
7.Stress Interview
8.Panel or Board Interview
SELECTION PROCESS
 TRAINING AND DEVELOPMENT

• Training
– Effort initiated by an organization to foster learning among
its members.
– Tends to be narrowly focused and oriented toward short-
term performance concerns.
• Development
– Effort that is oriented more toward broadening an
individual’s skills for the future responsibilities.
TRAINING MODEL
 PERFORMANCE APPRAISAL

• Performance appraisal or performance evaluation is the process of

assessing the performance and progress of an employee or of a group
of employees on a given job and his potential for future development.
METHODS:
TRADITIONAL METHOD MODERN METHOD
1. Confidential Report 1. Assessment Centre
2. Free Form 2. Human Resource accounting
3. Straight Ranking 3. Behavioral Anchored Rating
4. Paired Comparison 4. Appraisal Through MBO
5. Graphic Rating Scales
6. Checklist Method
 POTENTIAL APPRAISAL

• It is evaluating an employees capability or capacity to handle higher

responsibilities and greater challenges at a higher position in an
organization.
• It helps in identification of hidden talents and skills of a person.
• It is future oriented.

STEPS IN POTENTIAL APPRAISAL TECHNIQUES

Role or job description Self appraisal
Qualities or skills needed to perform the Peers appraisal
Superior appraisal
role MBO
Rating mechanisms Leadership exercises
Organizing the system Management games like role play
feedback Psychological and psychometric tests
Records of performance
 APPRAISAL PROCESS

Setting
performance
Taking corrective standards Communicating
standards
standards

Discussing Measuring
results standards
Comparing
standards
 COMPENSATION

• DEFINITION: The sum total of all forms of payments or rewards provided to employees
for performing tasks to achieve organizational objectives
• Nature and Scope:
 The complex process includes decisions regarding variable pay and benefits
 It suggests an exchange relationship between the employee and the organization
 It involves design, development, implementation, communication and the evaluation of
reward strategy and process of the organization
• POLICY:
 Pay for performance
 Pay for seniority
 Salary increases and promotions
 Overtime and shift pay
 Probationary pay
 Paid and unpaid leaves
 Paid holidays
 OBJECTIVES AND PROCESS

OBJECTIVES:
1.To attract and retain
competitive high performing
employees Pay
Structure
2.To motivate the high  Pay grades

performing employees and  Pay ranges

reinforce desirable employee

behaviour
3.To remain competitive in the
labor market
 PROMOTION TRANSFER AND SEPARATION

• Promotion refers to advancement of an employee to a higher post carrying greater

responsibilities, higher status and better salary.
• A transfer refers to a horizontal or lateral movement of an employee from one job
to another in the same organization without any significant changes status and pay.
• Types of Transfers:
1.Production Transfer
2. Replacement Transfer
3. Versatility Transfer
4. Remedial Transfer
5. Shift Transfer
• Separation of an employee takes place when his service agreement with the
organization come to an end and the employee the organization. It may occur due
to resignation, death, dismissal and layoff.
 INDUSTRIAL RELATION

• DEFINITION: It means Collective relationship between

management, employees and government in any industrial or non-
industrial organization .
• OBJECTIVES:
 To Develop and maintain harmonious relationship between management
and labour.
 To safeguard the interests of labour.
 To establish and maintain industrial Democracy.
 To avoid all form of industrial conflict so as to ensure industrial peace.
 To raise productivity and reduce high labour turnover.
 SAFETY

• It refers to the protection of workers from danger of industrial accidents.

• Accidents may be Internal or External.
• NEED FOR SAFETY:
 Cost Saving
 Increased Productivity
 Moral
 Legal
SAFETY PROGRAMME
 Making Strategic choices.
 Development of policies, procedures and training systems.
 Organization for safety.
 Analysis of cause and occurrences of accidents.
 Implementation of programme.
 Evaluation of effectiveness of the programme.
 Grievances

Any factor involving wages, hours, or conditions of employment that is used as a

complaint against the employer.
• Sources of grievances
– Absenteeism
– Insubordination
– Overtime
– Organizational rules
The number of steps in the grievance process differ according to the union involved,
but each contain the following:
• Oral Grievance
• Written Grievance
• Grievance Advanced to Employee/Labor Relations
• Arbitration